Hong Kong-based biopharmaceutical company HUTCHMED has agreed to divest its 45% equity interest in Shanghai Hutchison Pharmaceuticals (SHPL) for $608m in cash.
SHPL is a 50:50 joint venture between HUTCHMED and Shanghai Pharma founded in 2001.
The joint venture primarily manufactures, sells, and distributes its own-brand prescription medicines in China, predominantly for cardiovascular diseases.
The biopharmaceutical company, through its subsidiary HUTCHMED (China), signed agreements with GP Health Service Capital and Shanghai Pharmaceuticals to sell SHPL.
Under the terms of the agreements, GP Health Service Capital will purchase a 35% equity interest in SHPL from HUTCHMED for $473m in cash.
Also, Shanghai Pharma will acquire a 10% equity interest from HUTCHMED for around $135m in cash, to gain a total of 60% equity interest in SHPL, upon closing.
HUTCHMED will retain a 5% equity interest in SHPL after the transactions.
The transactions are expected to be completed by the end of the first quarter of 2025, subject to regulatory approvals and HUTCHMED shareholders’ approval.
HUTCHMED CEO and CSO Weiguo Su said: “We continue to invest in our prolific in-house R&D platform, including our new ATTC programs that we believe have significant potential impact on the treatment of cancers. This divestment brings us additional resources and further focus.”
“In contrast to traditional cytotoxin-based ADCs, we believe that our antibody-targeted therapy synergistic approach may also be combinable with immunotherapy- or chemotherapy-based frontline standards of care, could overcome chemotherapy resistance, and could avoid cytotoxin-related toxicities that limit long-term administration.
“This platform also maximises on our long history of addressing patients with genetic drivers, who benefit less from traditional ADC therapies.”
The transaction allows HUTCHMED to focus on its core business of discovering, developing and commercialising novel therapies for cancers and immunological diseases.
HUTCHMED intends to use the proceeds from the sale to further develop its internal pipeline and advance its core business strategy.
Its pipeline includes next-generation antibody-drug conjugate (ADC) platform, which builds on its expertise in small molecule targeted therapeutics and oncological pathways.
Furthermore, HUTCHMED plans to organise an Extraordinary General Meeting (EGM) for its shareholders to consider and to approve the proposed transactions.
In a separate development, HUTCHMED (China) announced that China’s National Medical Products Administration (NMPA) has accepted its New Drug Application (NDA) and granted Priority Review for Orpathys (savolitinib) in combination with Tagrisso (osimertinib).
The combination is indicated for patients with advanced epidermal growth factor receptor (EGFR) mutations-positive non-small cell lung cancer (NSCLC) with MET amplification.
Orpathys is an oral, potent, and highly selective MET tyrosine kinase inhibitor (TKI), and Tagrisso is a third-generation, irreversible EGFR TKI from British drugmaker AstraZeneca.
HUTCHMED’s NDA application is supported by data from Phase 3 SACHI study, which evaluated the efficacy and safety of Orpathys plus Tagrisso compared to standard-of-care.
NMPA’s Priority Review for Orpathys and Tagrisso combination in this potential indication follows the Breakthrough Therapy designation granted in December 2024.
With the NDA acceptance and Priority Review by NMPA, HUTCHMED (China) will receive a milestone payment from AstraZeneca.
